The leading Japanese EAF-based steel producer Tokyo Steel has reduced its local scrap purchase prices in two regions in two separate steps, as announced on January 26 and 28. The appreciation of the Japanese yen has supported the move despite market sources reporting that scrap availability in Japan has not improved much. The price reduction strategy is likely to be the result of lower scrap demand from Japanese producers, sources reported.
Despite the changes recently announced, the producer’s general purchase price range for H2 grade scrap has remained at JPY 43,500-44,500/mt ($283-289/mt) depending on the mill. The upper end of prices is still represented by Tokyo Bay. Including the changes in the exchange rates, the dollar-based prices have increased by $7-8/mt compared to the levels announced on January 10.
On the other hand, Tokyo Steel’s shindachi scrap prices have declined by JPY 500/mt on the lower end to the range of JPY 44,500-47,000/mt ($289-305/mt) delivered, up by $4 on the lower end and up by $7/mt on the upper end in US dollars. The prices shared in the table below are effective as of January 29.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 44,000 | 0 | 46,500 | 0 |
| Nagoya | 44,000 | 0 | - | |
| Okayama | 43,500 | -500 | 44,500 | -500 |
| Kansai | 43,500 | 0 | - | - |
| Takamatsu | Suspended | Suspended | ||
| Kyushu | 43,500 | -500 | 44,500 | -500 |
| Utsunomiya | 44,000 | 0 | 45,500 | 0 |
| Tokyo Bay | 44,500 | 0 | 47,000 | 0 |
$1 = JPY 153.98
